CHAPTER 10. ECONOMIC DEVELOPMENT
VERNON'S CIVIL STATUTES
TITLE 83. LABOR
CHAPTER 10. ECONOMIC DEVELOPMENT
Art. 5190.14. PAN AMERICAN GAMES; OLYMPIC GAMES.
Definitions
Sec. 1. In this Act:
(1) "Department" means the Economic Development and Tourism
Division, Office of the Governor.
(1-a) "Endorsing county" means an endorsing county for purposes
of Section 5, 5A, 5B, or 5C of this Act.
(2) "Endorsing municipality" means an endorsing municipality for
purposes of Section 4, 5, 5A, 5B, or 5C of this Act.
(2-a) "Event" means a game or event as defined by Section 5A,
5B, or 5C of this Act.
Text of subd. (3) as amended by Acts 2003, 78th Leg., ch. 579,
Sec. 1
(3) "Games" means the 2011 Pan American Games or the 2012 Olympic
Games.
Text of subd. (3) as amended by Acts 2003, 78th Leg., ch. 814,
Sec. 5.01
(3) "Games" means the Pan American Games, the Olympic Games, the
Super Bowl, the National Collegiate Athletic Association Final
Four, the National Basketball Association All-Star Game, the
National Hockey League All-Star Game, the Major League Baseball
All-Star Game, the National Collegiate Athletic Association Bowl
Championship Series Games, the World Cup Soccer Games, or the
World Games. The term includes the events and activities related
to the games.
(4) "Games support contract" means a joinder undertaking, a
joinder agreement, or a similar contract executed by the
department and containing terms permitted or required by this
Act.
(5) "Joinder agreement" means an agreement entered into by:
(A) the department on behalf of this state and a site selection
organization setting out representations and assurances by the
state in connection with the selection of a site in this state
for the location of a game or event; or
(B) a local organizing committee, an endorsing municipality, an
endorsing county, or more than one local organizing committee,
endorsing municipality, or endorsing county acting collectively,
and a site selection organization setting out representations and
assurances by each local organizing committee, endorsing
municipality, or endorsing county in connection with the
selection of a site in this state for the location of a game or
event.
(6) "Joinder undertaking" means an agreement entered into by:
(A) the department on behalf of this state and a site selection
organization that the state will execute a joinder agreement if
the site selection organization selects a site in this state for
a game or event; or
(B) a local organizing committee, an endorsing municipality, an
endorsing county, or more than one local organizing committee,
endorsing municipality, or endorsing county acting collectively,
and a site selection organization that each local organizing
committee, endorsing municipality, or endorsing county will
execute a joinder agreement if the site selection organization
selects a site in this state for a game or event.
(7) "Local organizing committee" means a nonprofit corporation
or its successor in interest that:
(A) has been authorized by an endorsing municipality, endorsing
county, or more than one endorsing municipality or county acting
collectively to pursue an application and bid on the applicant's
behalf to a site selection organization for selection as the site
of a game or event; or
(B) with the authorization of an endorsing municipality,
endorsing county, or more than one endorsing municipality or
county acting collectively, has executed an agreement with a site
selection organization regarding a bid to host a game or event.
(8) "Site selection organization" means a site selection
organization as defined by Sections 5, 5A, and 5C of this Act.
Sec. 2. PURPOSE. The purpose of this Act is to provide
assurances required by a site selection organization sponsoring a
sporting or non-sporting game or event and to provide financing
for the costs of:
(1) applying or bidding for selection as the site of a game or
event in this state;
(2) making the preparations necessary and desirable for the
conduct of a game or event in this state, including the
construction or renovation of facilities to the extent authorized
by this Act; and
(3) conducting a game or event in this state.
Sec. 3. LEGISLATIVE FINDINGS. The conduct in this state of one
or more games or events will:
(1) provide invaluable public visibility throughout the nation
or world for this state and the communities where the games or
events are held;
(2) encourage and provide major economic benefits to the
communities where the games or events are held and to the entire
state; and
(3) provide opportunities for the creation of jobs by local and
Texas businesses that pay a living wage.
Guarantee of State and Municipal Obligations; Pan American Games
Trust Fund
Sec. 4. (a) In this section:
Text of subd. (1) as amended by Acts 2003, 78th Leg., ch. 579,
Sec. 3
(1) "Games" means the 2011 Pan American Games.
Text of subd. (1) as amended by Acts 2003, 78th Leg., ch. 814,
Sec. 5.03
(1) "Games" means the Pan American Games.
(2) "Site selection organization" means the United States Olympic
Committee or the Pan American Sports Organization.
(3) "Endorsing municipality" means a municipality that has a
population of 850,000 or more and that authorizes a bid by a
local organizing committee for selection of the municipality as
the site of the games.
(b) If a site selection organization selects a site for the games
in this state pursuant to an application by a local organizing
committee acting on behalf of an endorsing municipality, after
the first occurrence of a measurable economic impact in this
state as a result of the preparation for the games, as determined
by the comptroller, but in no event later than one year before
the scheduled opening event of the games, the comptroller shall
determine for each subsequent calendar quarter, in accordance
with procedures developed by the comptroller:
(1) the incremental increase in the receipts to the state from
the taxes imposed under Chapters 151, 152, 156, and 183, Tax
Code, and under Title 5, Alcoholic Beverage Code, within the
market areas designated under Subsection (c) of this section,
that is directly attributable, as determined by the comptroller,
to the preparation for and presentation of the games and related
events;
(2) the incremental increase in the receipts collected by the
state on behalf of the endorsing municipality from the sales and
use tax imposed by the endorsing municipality under Section
321.101(a), Tax Code, that is directly attributable, as
determined by the comptroller, to the preparation for and
presentation of the games and related events; and
(3) the incremental increase in the receipts collected by the
endorsing municipality from the municipality's hotel occupancy
tax imposed under Chapter 351, Tax Code, that is directly
attributable, as determined by the comptroller, to the
preparation for and presentation of the games and related events.
(c) For the purposes of Subsection (b)(1) of this section, the
comptroller shall designate as a market area for the games each
area in which the comptroller determines there is a reasonable
likelihood of measurable economic impact directly attributable to
the preparation for and presentation of the games and related
events, including areas likely to provide venues, accommodations,
and services in connection with the games based on the proposal
provided by the local organizing committee under Section 7 of
this Act. The comptroller shall determine the geographic
boundaries of each market area. The endorsing municipality that
has been selected as the site for the games must be included in a
market area for the games.
(d) The comptroller shall retain, for the purpose of guaranteeing
the joint obligations of the state and the endorsing municipality
under a games support contract and this Act, the amount of
municipal sales and use tax revenue determined under Subsection
(b)(2) of this section from the amounts otherwise required to be
sent to the municipality under Section 321.502, Tax Code,
beginning with the first distribution of that tax revenue that
occurs after the date the comptroller makes the determination of
the amount of municipal sales and use tax revenue under
Subsection (b)(2). The comptroller shall discontinue retaining
municipal sales and use tax revenue under this subsection on the
earlier of:
(1) the end of the third calendar month following the month in
which the closing event of the games occurs; or
(2) the date the amount of municipal sales and use tax revenue
and municipal hotel occupancy tax revenue in the Pan American
Games trust fund equals 14 percent of the maximum amount of state
and municipal tax revenue that may be deposited in the trust fund
under Subsection (m) of this section.
(e) In addition to municipal sales and use tax revenue retained
under Subsection (d) of this section, an endorsing municipality
may guarantee its obligations under a games support contract and
this Act by pledging surcharges from user fees, including parking
or ticket fees, charged in connection with presentation of the
games.
(f) Subject to Subsection (m) of this section, the comptroller
shall deposit into a trust fund designated as the Pan American
Games trust fund the amount of municipal sales and use tax
revenue retained under Subsection (d) of this section and, at the
same time, a portion of the state tax revenue determined under
Subsection (b)(1) of this section in an amount equal to 6.25
times the amount of that municipal sales and use tax revenue.
Subject to Subsection (m) of this section, the endorsing
municipality shall deposit into the trust fund the amount of the
endorsing municipality's hotel occupancy tax revenue determined
under Subsection (b)(3) of this section. The endorsing
municipality shall deposit that hotel occupancy tax revenue into
the trust fund at least quarterly. When the endorsing
municipality makes a deposit of its hotel occupancy tax revenue,
the comptroller shall deposit at the same time a portion of the
state tax revenue determined under Subsection (b)(1) of this
section in an amount equal to 6.25 times the amount of that
municipal hotel occupancy tax revenue. The Pan American Games
trust fund is established outside the treasury but is held in
trust by the comptroller for the administration of this Act.
Money in the trust fund may be spent by the department without
appropriation only as provided by this Act. The comptroller shall
discontinue depositing into the trust fund any state tax revenue
determined under Subsection (b)(1) of this section on the earlier
of:
(1) the end of the third calendar month following the month in
which the closing event of the games occurs; or
(2) the date on which the amount of state revenue in the Pan
American Games trust fund equals 86 percent of the maximum amount
of state and municipal tax revenue that may be deposited in the
trust fund under Subsection (m) of this section.
(g) The department may use the funds in the Pan American Games
trust fund only to fulfill joint obligations of the state and the
endorsing municipality to a site selection organization under a
games support contract or any other agreement providing
assurances from the department or the endorsing municipality to a
site selection organization.
(h) A local organizing committee shall provide information
required by the comptroller to enable the comptroller to fulfill
the comptroller's duties under this Act, including annual audited
statements of the local organizing committee's financial records
required by a site selection organization and data obtained by
the local organizing committee relating to attendance at the
games and to the economic impact of the games. A local organizing
committee must provide an annual audited financial statement
required by the comptroller not later than the end of the fourth
month after the date the period covered by the financial
statement ends.
Text of subsec. (i) as amended by Acts 2003, 78th Leg., ch. 579,
Sec. 4
(i) The comptroller shall provide an estimate not later than
December 1, 2003, of the total amount of state and municipal tax
revenue that would be deposited in the Pan American Games trust
fund before January 1, 2012, if the games were to be held in this
state at a site selected pursuant to an application by a local
organizing committee. The comptroller shall provide the estimate
on request to a local organizing committee. A local organizing
committee may submit the comptroller's estimate to a site
selection organization.
Text of subsec. (i) as amended by Acts 2003, 78th Leg., ch. 814,
Sec. 5.03
(i) The comptroller shall provide an estimate not later than
September 1 of the year that is eight years before the year in
which the games would be held in this state of the total amount
of state and municipal tax revenue that would be deposited in the
Pan American Games trust fund before January 1 of the year
following the year in which the games would be held, if the games
were to be held in this state at a site selected pursuant to an
application by a local organizing committee. The comptroller
shall provide the estimate on request to a local organizing
committee. A local organizing committee may submit the
comptroller's estimate to a site selection organization.
(j) The department may not make a disbursement from the Pan
American Games trust fund unless the comptroller certifies that
the disbursement is for a purpose for which the state and the
endorsing municipality are jointly obligated under a games
support contract or other agreement described by Subsection (g)
of this section.
(k) If the comptroller certifies under Subsection (j) of this
section that a disbursement may be made from the Pan American
Games trust fund, the obligation shall be satisfied first out of
municipal revenue deposited in the trust fund and any interest
earned on that municipal revenue. If the municipal revenue is not
sufficient to satisfy the entire deficit, state revenue deposited
into the trust fund and any interest earned on that state revenue
shall be used to satisfy the portion of the deficit not covered
by the municipal revenue.
Text of subsec. (l) as amended by Acts 2003, 78th Leg., ch. 579,
Sec. 4
(l) On January 1, 2013, the comptroller shall transfer to the
general revenue fund any money remaining in the Pan American
Games trust fund, not to exceed the amount of state revenue
remaining in the trust fund, plus any interest earned on that
state revenue. The comptroller shall remit to the endorsing
municipality any money remaining in the trust fund after the
required amount is transferred to the general revenue fund.
Text of subsec. (l) as amended by Acts 2003, 78th Leg., ch. 814,
Sec. 5.03
(l) On January 1 of the second year following the year in which
the games are held in this state, the comptroller shall transfer
to the general revenue fund any money remaining in the Pan
American Games trust fund, not to exceed the amount of state
revenue remaining in the trust fund, plus any interest earned on
that state revenue. The comptroller shall remit to the endorsing
municipality any money remaining in the trust fund after the
required amount is transferred to the general revenue fund.
(m) In no event may:
(1) the total amount of state and municipal tax revenue deposited
in the Pan American Games trust fund exceed $20 million; or
(2) the joint liability of the state and the endorsing
municipality under a joinder agreement and any other games
support contracts entered into pursuant to this Act exceed the
lesser of:
(A) $20 million; or
(B) the total amount of revenue deposited in the Pan American
Games trust fund and interest earned on the fund.
Guarantee of State and Municipal Obligations; Olympic Games Trust
Fund
Sec. 5. (a) In this section:
(1) "Games" means the Olympic Games.
(2) "Site selection organization" means the United States Olympic
Committee or the International Olympic Committee.
(3) "Endorsing county" means a county in which there is located
all or part of a municipality that has a population of 850,000 or
more, or a county adjacent to such a county.
(4) "Endorsing municipality" has the meaning assigned by Section
4 of this Act.
(b) If a site selection organization selects a site for the games
in this state pursuant to an application by a local organizing
committee, after the first occurrence of a measurable economic
impact in this state as a result of the preparation for the
games, as determined by the comptroller, but in no event later
than one year before the scheduled opening event of the games,
the comptroller shall determine for each subsequent calendar
quarter, in accordance with procedures developed by the
comptroller:
(1) the incremental increase in the receipts to the state from
the taxes imposed under Chapters 151, 152, 156, and 183, Tax
Code, and under Title 5, Alcoholic Beverage Code, within the
market areas designated under Subsection (c) of this section,
that is directly attributable, as determined by the comptroller,
to the preparation for and presentation of the games and related
events;
(2) the incremental increase in the receipts collected by the
state on behalf of each endorsing municipality from the sales and
use tax imposed by the endorsing municipality under Section
321.101(a), Tax Code, and the mixed beverage tax revenue to be
received by the endorsing municipality under Section 183.051(b),
Tax Code, that is directly attributable, as determined by the
comptroller, to the preparation for and presentation of the games
and related events;
(3) the incremental increase in the receipts collected by the
state on behalf of each endorsing county from the sales and use
tax imposed by the county under Section 323.101(a), Tax Code, and
the mixed beverage tax revenue to be received by the endorsing
county under Section 183.051(b), Tax Code, that is directly
attributable, as determined by the comptroller, to the
preparation for and presentation of the games and related events;
(4) the incremental increase in the receipts collected by each
endorsing municipality from the hotel occupancy tax imposed under
Chapter 351, Tax Code, that is directly attributable, as
determined by the comptroller, to the preparation for and
presentation of the games and related events; and
(5) the incremental increase in the receipts collected by each
endorsing county from the hotel occupancy tax imposed under
Chapter 352, Tax Code, that is directly attributable, as
determined by the comptroller, to the preparation for and
presentation of the games and related events.
(c) For the purposes of Subsection (b)(1) of this section, the
comptroller shall designate as a market area for the games each
area in which the comptroller determines there is a reasonable
likelihood of measurable economic impact directly attributable to
the preparation for and presentation of the games and related
events, including areas likely to provide venues, accommodations,
and services in connection with the games based on the proposal
provided by the local organizing committee under Section 7 of
this Act. The comptroller shall determine the geographic
boundaries of each market area. Each endorsing municipality or
endorsing county that has been selected as the site for the games
must be included in a market area for the games.
(d) Subject to Section 6 of this Act, the comptroller shall
retain, for the purpose of guaranteeing the joint obligations of
the state and an endorsing municipality or endorsing county under
a games support contract and this Act, the amount of sales and
use tax revenue and mixed beverage tax revenue determined under
Subsection (b)(2) or (b)(3) of this section from the amounts
otherwise required to be sent to the municipality under Section
183.051(b) or 321.502, Tax Code, or to the county under Section
183.051(b) or 323.502, Tax Code, beginning with the first
distribution of that tax revenue that occurs after the date the
comptroller makes the determination of the amount of sales and
use tax revenue and mixed beverage tax revenue under Subsection
(b)(2) or (b)(3) of this section. The comptroller shall
discontinue retaining sales and use tax revenue and mixed
beverage tax revenue under this subsection on the earlier of:
(1) the end of the third calendar month following the month in
which the closing event of the games occurs; or
(2) the date the amount of local sales and use tax revenue and
mixed beverage tax revenue in the Olympic Games trust fund equals
14 percent of the maximum amount of state and local tax revenue
that may be deposited in the trust fund under Subsection (m) of
this section.
(e) In addition to sales and use tax revenue and mixed beverage
tax revenue retained under Subsection (d) of this section and
hotel occupancy tax revenue retained under Subsection (f) of this
section, an endorsing municipality or endorsing county may
guarantee its obligations under a games support contract and this
Act by pledging surcharges from user fees, including parking or
ticket fees, charged in connection with presentation of the
games.
(f) Subject to Subsection (m) of this section, each endorsing
municipality or endorsing county shall remit to the comptroller
and the comptroller shall deposit into a trust fund designated as
the Olympic Games trust fund, on a quarterly basis, the amount of
the municipality's or county's hotel occupancy tax revenue
determined under Subsection (b)(4) or (b)(5) of this section, as
applicable. Subject to Section 6 of this Act and Subsection (m)
of this section, the comptroller shall deposit into the trust
fund the amount of sales and use tax revenue and mixed beverage
tax revenue retained under Subsection (d) of this section for the
same calendar quarter and, at the same time, the state tax
revenue determined under Subsection (b)(1) of this section for
the quarter. The Olympic Games trust fund is established outside
the treasury but is held in trust by the comptroller for the
administration of this Act. Money in the trust fund may be spent
by the department without appropriation only as provided by this
Act. The comptroller shall discontinue deposit of the amount of
state tax revenue determined under Subsection (b)(1) of this
section on the earlier of:
(1) the end of the third calendar month following the month in
which the closing event of the games occurs; or
(2) the date the amount of state revenue in the Olympic Games
trust fund equals 86 percent of the maximum amount of state,
municipal, and county tax revenue that may be deposited in the
trust fund under Subsection (m) of this section.
(g) The department may use the funds in the Olympic Games trust
fund only to fulfill joint obligations of the state and each
endorsing municipality or endorsing county to a site selection
organization under a games support contract or any other
agreement providing assurances from the department or the
municipality or county to a site selection organization.
(h) A local organizing committee shall provide information
required by the comptroller to enable the comptroller to fulfill
the comptroller's duties under this Act, including annual audited
statements of the local organizing committee's financial records
required by a site selection organization and data obtained by
the local organizing committee relating to attendance at the
games and to the economic impact of the games. A local organizing
committee must provide an annual audited financial statement
required by the comptroller not later than the end of the fourth
month after the date the period covered by the financial
statement ends.
(i) The comptroller shall provide an estimate before August 31 of
the year that is 12 years before the year in which the games
would be held in this state, or as soon as practical after that
date, of the total amount of state, municipal, and county tax
revenue that would be deposited in the Olympic Games trust fund
if the games were to be held in this state at a site selected
pursuant to an application by a local organizing committee. The
comptroller shall provide the estimate on request to a local
organizing committee. A local organizing committee may submit the
comptroller's estimate to a site selection organization.
(j) The department may not make a disbursement from the Olympic
Games trust fund unless the comptroller certifies that the
disbursement is for a purpose for which the state and each
endorsing municipality or endorsing county are jointly obligated
under a games support contract or other agreement described by
Subsection (g) of this section. A disbursement may not be made
from the trust fund that the department determines would be used
for the purpose of soliciting the relocation of a professional
sports franchise located in this state.
(k) If the comptroller certifies under Subsection (j) of this
section that a disbursement may be made from the Olympic Games
trust fund, the obligation shall be satisfied proportionately
from the state and municipal or county revenue in the trust fund.
(l) Two years after the closing event of the games, the
comptroller shall transfer to the general revenue fund any money
remaining in the Olympic Games trust fund, not to exceed the
amount of state revenue remaining in the trust fund, plus any
interest earned on that state revenue. The comptroller shall
remit to each endorsing entity in proportion to the amount
contributed by the entity any money remaining in the trust fund
after the required amount is transferred to the general revenue
fund.
(m) In no event may:
(1) the total amount of state, municipal, and county tax revenue
deposited in the Olympic Games trust fund exceed $100 million; or
(2) the joint liability of the state and an endorsing
municipality or county under a joinder agreement and any other
games support contracts entered into pursuant to this Act exceed
the lesser of:
(A) $100 million; or
(B) the total amount of revenue deposited in the Olympic Games
trust fund and interest earned on the fund.
Sec. 5A. PAYMENT OF STATE AND MUNICIPAL OR COUNTY OBLIGATIONS;
MAJOR EVENTS TRUST FUND. (a) In this section:
(1) "Endorsing county" means:
(A) a county that contains a site selected by a site selection
organization for one or more events; or
(B) a county that:
(i) does not contain a site selected by a site selection
organization for an event;
(ii) is included in the market area for the event as designated
by the comptroller; and
(iii) is a party to an event support contract.
(2) "Endorsing municipality" means:
(A) a municipality that contains a site selected by a site
selection organization for one or more events; or
(B) a municipality that:
(i) does not contain a site selected by a site selection
organization for an event;
(ii) is included in the market area for the event as designated
by the comptroller; and
(iii) is a party to an event support contract.
(3) "Event support contract" means a joinder undertaking,
joinder agreement, or a similar contract executed by a local
organizing committee, an endorsing municipality, or an endorsing
county and a site selection organization.
(4) "Event" means a Super Bowl, a National Collegiate Athletic
Association Final Four tournament game, the National Basketball
Association All-Star Game, the National Hockey League All-Star
Game, the Major League Baseball All-Star Game, a National
Collegiate Athletic Association Bowl Championship Series game, a
World Cup Soccer game, the World Games, a national collegiate
championship of an amateur sport sanctioned by the national
governing body of the sport that is recognized by the United
States Olympic Committee, an Olympic activity, including a Junior
or Senior activity, training program, or feeder program
sanctioned by the United States Olympic Committee's Community
Olympic Development Program, the Breeders' Cup World
Championships, or a Formula One automobile race. The term
includes any activities related to or associated with an event.
(5) "Site selection organization" means the National Football
League, the National Collegiate Athletic Association, the
National Basketball Association, the National Hockey League,
Major League Baseball, the Federation Internationale de Football
Association (FIFA), the International World Games Association,
the United States Olympic Committee or the national governing
body of a sport that is recognized by the United States Olympic
Committee, the National Thoroughbred Racing Association, Formula
One Management Limited, or the Federation Internationale de
l'Automobile.
(a-1) An event included in Subsection (a)(4) of this section is
eligible for funding under this section only if:
(1) a site selection organization selects a site located in this
state for the event after considering, through a highly
competitive selection process, one or more sites that are not
located in this state;
(2) a site selection organization selects a site in this state
as the sole site for the event; and
(3) the event is held not more than one time in any year.
(b) If a site selection organization selects a site for an event
in this state pursuant to an application by a local organizing
committee, endorsing municipality, or endorsing county, upon
request of a local organizing committee, endorsing municipality,
or endorsing county, the comptroller shall determine for a
one-year period that begins two months before the date on which
the event will begin, in accordance with procedures developed by
the comptroller:
(1) the incremental increase in the receipts to the state from
taxes imposed under Chapters 151, 152, 156, and 183, Tax Code,
and under Title 5, Alcoholic Beverage Code, within the market
areas designated under Subsection (c) of this section, that is
directly attributable, as determined by the comptroller, to the
preparation for and presentation of the event and related
activities;
(2) the incremental increase in the receipts collected by the
state on behalf of each endorsing municipality in the market area
from the sales and use tax imposed by each endorsing municipality
under Section 321.101(a), Tax Code, and the mixed beverage tax
revenue to be received by each endorsing municipality under
Section 183.051(b), Tax Code, that is directly attributable, as
determined by the comptroller, to the preparation for and
presentation of the event and related activities;
(3) the incremental increase in the receipts collected by the
state on behalf of each endorsing county in the market area from
the sales and use tax imposed by each endorsing county under
Section 323.101(a), Tax Code, and the mixed beverage tax revenue
to be received by each endorsing county under Section 183.051(b),
Tax Code, that is directly attributable, as determined by the
comptroller, to the preparation for and presentation of the event
and related activities;
(4) the incremental increase in the receipts collected by each
endorsing municipality in the market area from the hotel
occupancy tax imposed under Chapter 351, Tax Code, that is
directly attributable, as determined by the comptroller, to the
preparation for and presentation of the event and related
activities; and
(5) the incremental increase in the receipts collected by each
endorsing county in the market area from the hotel occupancy tax
imposed under Chapter 352, Tax Code, that is directly
attributable, as determined by the comptroller, to the
preparation for and presentation of the event and related
activities.
(b-1) A request for a determination of the amount of incremental
increase in tax receipts specified by Subsection (b) of this
section must be submitted to the comptroller not earlier than one
year and not later than three months before the date the event
begins. The comptroller shall base the determination specified
by Subsection (b) of this section on information submitted by the
local organizing committee, endorsing municipality, or endorsing
county, and must make the determination not later than the 30th
day after the date the comptroller receives the request and
related information.
(c) For the purposes of Subsection (b)(1) of this section, the
comptroller shall designate as a market area for the event each
area in which the comptroller determines there is a reasonable
likelihood of measurable economic impact directly attributable to
the preparation for and presentation of the event and related
activities, including areas likely to provide venues,
accommodations, and services in connection with the event based
on the proposal provided by the local organizing committee to the
comptroller. The comptroller shall determine the geographic
boundaries of each market area. An endorsing municipality or
endorsing county that has been selected as the site for the event
must be included in a market area for the event.
(d) Each endorsing municipality or endorsing county shall remit
to the comptroller and the comptroller shall deposit into a trust
fund created by the comptroller and designated as the Major
Events trust fund the amount of the municipality's or county's
hotel occupancy tax revenue determined under Subsection (b)(4) or
(b)(5) of this section, less any amount of the revenue that the
municipality or county determines is necessary to meet the
obligations of the municipality or county. The comptroller shall
retain the amount of sales and use tax revenue and mixed beverage
tax revenue determined under Subsection (b)(2) or (b)(3) of this
section from the amounts otherwise required to be sent to the
municipality under Sections 321.502 and 183.051(b), Tax Code, or
to the county under Sections 323.502 and 183.051(b), Tax Code,
and deposit into the trust fund the tax revenues, less any amount
of the revenue that the municipality or county determines is
necessary to meet the obligations of the municipality or county.
The comptroller shall begin retaining and depositing the local
tax revenues with the first distribution of that tax revenue that
occurs after the first day of the one-year period described by
Subsection (b) of this section or at a time otherwise determined
to be practicable by the comptroller and shall discontinue
retaining the local tax revenues under this subsection when the
amount of the applicable tax revenue determined under Subsection
(b)(2) or (b)(3) of this section has been retained. The Major
Events trust fund is established outside the state treasury and
is held in trust by the comptroller for administration of this
Act. Money in the trust fund may be disbursed by the comptroller
without appropriation only as provided by this section.
(d-1) Not later than the 90th day after the last day of an event
and in lieu of the local tax revenues remitted to or retained by
the comptroller under Subsection (d) of this section, a
municipality or county may remit to the comptroller for deposit
in the Major Events trust fund other local funds in an amount
equal to the total amount of local tax revenue determined under
Subsections (b)(2) through (5) of this section. The amount
deposited by the comptroller into the Major Events trust fund
under this subsection is subject to Subsection (f) of this
section.
(e) In addition to the tax revenue deposited in the Major Events
trust fund under Subsection (d) of this section, an endorsing
municipality or endorsing county may guarantee its obligations
under an event support contract and this section by pledging
surcharges from user fees, including parking or ticket fees,
charged in connection with the event. An endorsing municipality
or endorsing county may collect and remit to the comptroller
surcharges and user fees attributable to the event for deposit
into the Major Events trust fund.
(f) The comptroller shall deposit into the Major Events trust
fund a portion of the state tax revenue not to exceed the amount
determined under Subsection (b)(1) of this section in an amount
equal to 6.25 times the amount of the local revenue retained or
remitted under this section, including:
(1) local sales and use tax revenue;
(2) mixed beverage tax revenue;
(3) hotel occupancy tax revenue; and
(4) surcharge and user fee revenue.
(g) To meet its obligations under a game support contract or
event support contract to improve, construct, renovate, or
acquire facilities or to acquire equipment, an endorsing
municipality by ordinance or an endorsing county by order may
authorize the issuance of notes. An endorsing municipality or
endorsing county may provide that the notes be paid from and
secured by amounts on deposit or amounts to be deposited into the
Major Events trust fund or surcharges from user fees, including
parking or ticket fees, charged in connection with the event.
Any note issued must mature not later than seven years from its
date of issuance.
(h) The funds in the Major Events trust fund may be used to pay
the principal of and interest on notes issued by an endorsing
municipality or endorsing county under Subsection (g) of this
section and to fulfill obligations of the state or an endorsing
municipality or endorsing county to a site selection organization
under a game support contract or event support contract, which
obligations may include the payment of costs relating to the
preparations necessary or desirable for the conduct of the event
and the payment of costs of conducting the event, including
improvements or renovations to existing facilities or other
facilities and costs of acquisition or construction of new
facilities or other facilities.
(i) A local organizing committee, endorsing municipality, or
endorsing county shall provide information required by the
comptroller to enable the comptroller to fulfill the
comptroller's duties under this section, including annual audited
statements of any financial records required by a site selection
organization and data obtained by the local organizing committee,
an endorsing municipality, or an endorsing county relating to
attendance at the event and to the economic impact of the event.
A local organizing committee, endorsing municipality, or
endorsing county must provide an annual audited financial
statement required by the comptroller, if any, not later than the
end of the fourth month after the date the period covered by the
financial statement ends. After the conclusion of an event and
on the comptroller's request, a local organizing committee,
endorsing municipality, or endorsing county must provide
information relating to the event, such as attendance figures,
financial information, or other public information held by the
local organizing committee, endorsing municipality, or endorsing
county that the comptroller considers necessary.
(j) Not later than the 30th day after the date a request of a
local organizing committee, endorsing municipality, or endorsing
county is submitted to the comptroller under Subsection (b-1) of
this section, the comptroller shall provide an estimate of the
total amount of tax revenue that would be deposited in the Major
Events trust fund under this section in connection with that
event, if the event were to be held in this state at a site
selected pursuant to an application by a local organizing
committee, endorsing municipality, or endorsing county. A local
organizing committee, endorsing municipality, or endorsing county
may submit the comptroller's estimate to a site selection
organization.
(k) The comptroller may make a disbursement from the Major
Events trust fund on the prior approval of each contributing
endorsing municipality or endorsing county for a purpose for
which a local organizing committee, an endorsing municipality, or
an endorsing county or the state is obligated under a game
support contract or event support contract. A disbursement may
not be made from the trust fund that the comptroller determines
would be used for the purpose of soliciting the relocation of a
professional sports franchise located in this state.
(l) If a disbursement is made from the Major Events trust fund
under Subsection (k), the obligation shall be satisfied
proportionately from the state and local revenue in the trust
fund.
(m) On payment of all state, municipal, or county obligations
under a game support contract or event support contract related
to the location of any particular event in the state, the
comptroller shall remit to each endorsing entity, in proportion
to the amount contributed by the entity, any money remaining in
the trust fund.
(n) Repealed by Acts 2009, 81st Leg., R.S., Ch. 810, Sec. 8,
eff. September 1, 2009.
(o) This section may not be construed as creating or requiring a
state guarantee of obligations imposed on the state or an
endorsing municipality or endorsing county under an event support
contract or other agreement relating to hosting one or more
events in this state.
(p) The comptroller may not undertake any of the
responsibilities or duties set forth in this section unless a
request is submitted by the municipality or the county in which
the event will be located. The request must be accompanied by
documentation from a site selection organization selecting the
site for the event.
(q) Repealed by Acts 2005, 79th Leg., Ch. 150, Sec. 1, eff.
September 1, 2005.
(r) This subsection applies only to an event that the
comptroller determines under Subsection (b) of this section will
generate at least $15 million in state and local tax revenue.
The comptroller and one or more endorsing municipalities or
endorsing counties may enter into an agreement to provide that an
amount equal to the amount of local tax revenue determined by the
comptroller under Subsections (b)(2) through (5) of this section
shall be remitted to the comptroller by one or more endorsing
municipalities or endorsing counties and shall be deposited by
the comptroller into the Major Events trust fund before the
event. In the 12 months immediately preceding the event, the
comptroller may deposit into the trust fund an amount equal to
the amount the state is required to deposit under Subsection (f)
of this section from any amounts appropriated by the legislature
for the purposes of this subsection. The comptroller may make
disbursements from the trust fund in amounts that do not exceed
the amounts deposited under this subsection in accordance with
the agreement to pay costs relating to attracting and securing
the event. An agreement under this subsection may provide that,
following the last day of an event, the funds eligible for
disbursement under Subsection (k) of this section be held in the
trust fund and made available to pay the cost of securing the
event in future years.
(s) The term of an agreement entered into under Subsection (r)
of this section may not exceed 10 years and must terminate:
(1) on the final termination date provided in the agreement; or
(2) if the event covered by the agreement is not held during any
18-month period covered by the agreement.
(t) On termination of an agreement entered into under Subsection
(r) of this section, the total amount of the state's initial
contribution under the agreement must be repaid to the state from
funds disbursed under Subsection (k) of this section or from any
other source specified in the agreement. An agreement entered
into under Subsection (r) of this section must include terms that
the comptroller determines are necessary to protect the state's
interest, including a provision for a performance bond or other
guarantee of repayment if the event is not held in the state
after a disbursement has been made.
(u) The comptroller shall deposit any amount appropriated by the
legislature for the purposes of Subsection (r) of this section
into the Major Event trust fund for the limited purpose of paying
the costs of attracting and securing an event eligible under that
subsection.
(v) The comptroller may adopt rules necessary to implement this
section.
Sec. 5B. GUARANTEE OF STATE AND MUNICIPAL OR COUNTY OBLIGATIONS;
MOTOR SPORTS RACING TRUST FUND. (a) In this section:
(1) "Endorsing county" means a county that contains a site
selected by a site selection organization for one or more motor
sports racing events.
(2) "Endorsing municipality" means a municipality that contains
a site selected by a site selection organization for one or more
motor sports racing events.
(3) "Event support contract" means a joinder undertaking,
joinder agreement, or similar contract executed by an endorsing
municipality or endorsing county and a site selection
organization.
(4) "Motor sports racing event" means a specific automobile
racing event sanctioned by the Automobile Competition Committee
for the United States (ACCUS) and held at a temporary event
venue. The term includes any events and activities held,
sponsored, or endorsed by the site selection organization in
conjunction with the racing event.
(b) If a site selection organization selects a site for a motor
sports racing event in this state pursuant to an application by a
local organizing committee, endorsing municipality, or endorsing
county, not later than three months before the date of the motor
sports racing event, the comptroller shall determine for the
30-day period that ends at the end of the day after the date on
which the racing event will be held, in accordance with
procedures developed by the comptroller:
(1) the incremental increase in the receipts to the state from
taxes imposed under Chapters 151, 152, 156, and 183, Tax Code,
and under Title 5, Alcoholic Beverage Code, within the market
areas designated under Subsection (c) of this section, that is
directly attributable, as determined by the comptroller, to the
preparation for and presentation of the racing event;
(2) the incremental increase in the receipts collected by the
state on behalf of each endorsing municipality in the market area
from the sales and use tax imposed by each endorsing municipality
under Section 321.101(a), Tax Code, and the mixed beverage tax
revenue to be received by each endorsing municipality under
Section 183.051(b), Tax Code, that is directly attributable, as
determined by the comptroller, to the preparation for and
presentation of the racing event;
(3) the incremental increase in the receipts collected by the
state on behalf of each endorsing county in the market area from
the sales and use tax imposed by each endorsing county under
Section 323.101(a), Tax Code, and the mixed beverage tax revenue
to be received by each endorsing county under Section 183.051(b),
Tax Code, that is directly attributable, as determined by the
comptroller, to the preparation for and presentation of the
racing event;
(4) the incremental increase in the receipts collected by each
endorsing municipality in the market area from the hotel
occupancy tax imposed under Chapter 351, Tax Code, that is
directly attributable, as determined by the comptroller, to the
preparation for and presentation of the racing event; and
(5) the incremental increase in the receipts collected by each
endorsing county in the market area from the hotel occupancy tax
imposed under Chapter 352, Tax Code, that is directly
attributable, as determined by the comptroller, to the
preparation for and presentation of the racing event.
(c) For the purposes of Subsection (b)(1) of this section, the
comptroller shall designate as a market area for the motor sports
racing event each area in which the comptroller determines there
is a reasonable likelihood of measurable economic impact directly
attributable to the preparation for and presentation of the
racing event, including areas likely to provide venues,
accommodations, and services in connection with the racing event
based on a proposal or other information provided by an endorsing
municipality, endorsing county, or local organizing committee to
the comptroller. The comptroller shall determine the geographic
boundaries of each market area. An endorsing municipality or
endorsing county that has been selected as the site for the
racing event must be included in a market area for the racing
event.
(d) Each endorsing municipality or endorsing county shall remit
to the comptroller and the comptroller shall deposit into a trust
fund created by the comptroller and designated as the Motor
Sports Racing trust fund for the particular event the amount of
the municipality's or county's hotel occupancy tax revenue
determined under Subsection (b)(4) or (5) of this section, less
any amount of the revenue that the municipality or county
determines is necessary to meet the obligations of the
municipality or county. The comptroller shall retain the amount
of sales and use tax revenue and mixed beverage tax revenue
determined under Subsection (b)(2) or (3) of this section from
the amounts otherwise required to be sent to the municipality
under Sections 321.502 and 183.051(b), Tax Code, or to the county
under Sections 323.502 and 183.051(b), Tax Code, and deposit into
the trust fund the tax revenues, less any amount of the revenue
that the municipality or county determines is necessary to meet
the obligations of the municipality or county. The comptroller
shall begin retaining and depositing the local tax revenues with
the first distribution of that tax revenue that occurs after the
first day of the 30-day period described by Subsection (b) of
this section and shall discontinue retaining the local tax
revenues under this subsection when the amount of the applicable
tax revenue determined under Subsection (b)(2) or (3) of this
section has been retained. The Motor Sports Racing trust fund is
established outside the state treasury and is held in trust by
the comptroller for administration of this section. Money in the
trust fund may be disbursed by the comptroller without
appropriation only as provided by this section.
(e) In addition to the tax revenue deposited in the Motor Sports
Racing trust fund under Subsection (d) of this section, an
endorsing municipality or endorsing county may guarantee its
obligations under a motor sports racing event support contract
and this section by pledging surcharges from user fees, including
parking or ticket fees, charged in connection with the racing
event.
(f) The comptroller shall deposit a portion of the state tax
revenue determined under Subsection (b)(1) of this section in an
amount equal to 6.25 times the amount of the local sales and use
tax revenue and mixed beverage tax revenue retained and the hotel
occupancy tax revenue remitted by an endorsing municipality or
endorsing county under Subsection (d) of this section.
(g) To meet its obligations under a motor sports racing event
support contract or event support contract to improve, renovate,
or acquire facilities or to acquire equipment, an endorsing
municipality by ordinance or an endorsing county by order may
authorize the issuance of notes. An endorsing municipality or
endorsing county may provide that the notes be paid from and
secured by amounts on deposit or amounts to be deposited into the
Motor Sports Racing trust fund or surcharges from user fees,
including parking or ticket fees, charged in connection with the
racing event. Any note issued must mature not later than seven
years from its date of issuance.
(h) The funds in the Motor Sports Racing trust fund may be used
to pay the principal of and interest on notes issued by an
endorsing municipality or endorsing county under Subsection (g)
of this section and to fulfill obligations of the state or an
endorsing municipality or endorsing county to a site selection
organization under a motor sports racing event support contract
or event support contract, which obligations may include the
payment of costs relating to the preparations necessary or
desirable for the conduct of the racing event and the payment of
costs of conducting the racing event, including temporary
improvements or temporary renovations to existing facilities or
other facilities specific to the event.
(i) A local organizing committee, endorsing municipality, or
endorsing county shall provide information required by the
comptroller to enable the comptroller to fulfill the
comptroller's duties under this section, including annual audited
statements of any financial records required by a site selection
organization and data obtained by the local organizing committee,
an endorsing municipality, or an endorsing county relating to
attendance at the motor sports racing event and to the economic
impact of the racing event. A local organizing committee,
endorsing municipality, or endorsing county must provide an
annual audited financial statement required by the comptroller,
if any, not later than the end of the fourth month after the date
the period covered by the financial statement ends.
(j) The comptroller shall provide an estimate not later than
three months before the date of a motor sports racing event of
the total amount of tax revenue that would be deposited in the
Motor Sports Racing trust fund under this section in connection
with that racing event, if the racing event were to be held in
this state at a site selected pursuant to an application by a
local organizing committee, endorsing municipality, or endorsing
county. The comptroller shall provide the estimate on request to
a local organizing committee, endorsing municipality, or
endorsing county. A local organizing committee, endorsing
municipality, or endorsing county may submit the comptroller's
estimate to a site selection organization.
(k) The comptroller may make a disbursement from the Motor
Sports Racing trust fund on the prior approval of each
contributing endorsing municipality or endorsing county for a
purpose for which an endorsing municipality or endorsing county
or the state is obligated under a motor sports racing event
support contract or event support contract. A disbursement may
not be made from the trust fund that the comptroller determines
would be used for the purpose of soliciting the relocation of a
professional sports franchise located in this state.
(l) If a disbursement is made from the Motor Sports Racing trust
fund under Subsection (k) of this section, the obligation shall
be satisfied proportionately from the state and local revenue in
the trust fund.
(m) On payment of all state, municipal, or county obligations
under a motor sports racing support contract or event support
contract related to the location of any particular racing event
in the state, the comptroller shall remit to each endorsing
entity, in proportion to the amount contributed by the entity,
any money remaining in the trust fund.
(n) This section may not be construed as creating or requiring a
state guarantee of obligations imposed on the state or an
endorsing municipality or endorsing county under a motor sports
racing event support contract or other agreement relating to
hosting one or more racing events in this state.
(o) The comptroller may not undertake any of the
responsibilities or duties set forth in this section unless a
request is submitted by the municipality and the county in which
the motor sports racing event will be held. The request must be
accompanied by documentation from a site selection organization
selecting the site for the racing event.
(p) Any provision of this Act applicable to games as defined by
Section 1(3) of this Act also applies to a motor sports racing
event as defined in this section.
Sec. 5C. EVENTS TRUST FUND FOR CERTAIN MUNICIPALITIES AND
COUNTIES.
(a) In this section:
(1) "Endorsing county" means a county that contains a site
selected by a site selection organization for one or more events.
(2) "Endorsing municipality" means a municipality that contains
a site selected by a site selection organization for one or more
events.
(3) "Event" means an event or a related series of events held in
this state for which a local organizing committee, endorsing
county, or endorsing municipality seeks approval from a site
selection organization to hold the event at a site in this state.
The term includes any activities related to or associated with
the event.
(4) "Event support contract" means a joinder undertaking, a
joinder agreement, or a similar contract executed by a local
organizing committee, an endorsing municipality, or an endorsing
county and a site selection organization.
(5) "Site selection organization" means an entity that conducts
or considers conducting an eligible event in this state.
(a-1) An event is eligible for funding under this section only
if:
(1) a site selection organization selects a site for the event
located in this state after considering, through a highly
competitive selection process, one or more sites that are not
located in this state;
(2) a site selection organization selects a site in this state
as:
(A) the sole site for the event; or
(B) the sole site for the event in a region composed of this
state and one or more adjoining states; and
(3) the event is held not more than one time in this state or an
adjoining state in any year.
(b) If a site selection organization selects a site for an event
in this state pursuant to an application by a local organizing
committee, endorsing municipality, or endorsing county, not later
than three months before the date of the event, the comptroller
shall determine for the 30-day period that ends at the end of the
day after the date on which the event will be held or, if the
event occurs on more than one day, after the last date on which
the event will be held, in accordance with procedures developed
by the comptroller:
(1) the incremental increase in the receipts to this state from
taxes imposed under Chapters 151, 152, 156, and 183, Tax Code,
and under Title 5, Alcoholic Beverage Code, within the market
areas designated under Subsection (c) of this section, that is
directly attributable, as determined by the comptroller, to the
preparation for and presentation of the event and related
activities;
(2) the incremental increase in the receipts collected by this
state on behalf of each endorsing municipality in the market area
from the sales and use tax imposed by each endorsing municipality
under Section 321.101(a), Tax Code, and the mixed beverage tax
revenue to be received by each endorsing municipality under
Section 183.051(b), Tax Code, that is directly attributable, as
determined by the comptroller, to the preparation for and
presentation of the event and related activities;
(3) the incremental increase in the receipts collected by this
state on behalf of each endorsing county in the market area from
the sales and use tax imposed by each endorsing county under
Section 323.101(a), Tax Code, and the mixed beverage tax revenue
to be received by each endorsing county under Section 183.051(b),
Tax Code, that is directly attributable, as determined by the
comptroller, to the preparation for and presentation of the event
and related activities;
(4) the incremental increase in the receipts collected by each
endorsing municipality in the market area from the hotel
occupancy tax imposed under Chapter 351, Tax Code, that is
directly attributable, as determined by the comptroller, to the
preparation for and presentation of the event and related
activities; and
(5) the incremental increase in the receipts collected by each
endorsing county in the market area from the hotel occupancy tax
imposed under Chapter 352, Tax Code, that is